Asked by Jasmine Thornton on Jul 27, 2024
Verified
Hedge funds differ from mutual funds in terms of
A) transparency.
B) investors.
C) investment strategy.
D) liquidity.
E) All of the options are correct.
Transparency
In finance, it refers to the extent to which investors have ready access to required financial information about a company, market, or security.
Investment Strategy
A plan designed to guide an investor's selection of an investment portfolio, typically based on goals, risk tolerance, and future needs for capital.
Liquidity
The ease with which an asset or security can be converted into cash without significantly affecting its market price.
- Compare and contrast hedge funds with mutual funds in terms of structure, regulation, and investor base.
Verified Answer
TL
THANH Le Hoang PhuongJul 27, 2024
Final Answer :
E
Explanation :
Hedge funds typically offer less transparency, cater to accredited or institutional investors, employ a wider range of investment strategies, and provide different liquidity terms compared to mutual funds.
Learning Objectives
- Compare and contrast hedge funds with mutual funds in terms of structure, regulation, and investor base.